Chicago Tribune Lets CEO Push Business Interests Without Disclosure

Keystone XL protests via Joshua Roberts/ReutersThe Chicago Tribune published an op-ed by the CEO of Caterpillar, a manufacturer of large construction equipment, which advocated for the construction of the Keystone XL pipeline but failed to disclose Caterpillar's significant financial stake in the pipeline's construction.

The January 7 op-ed in the Tribune by Caterpillar chairman and CEO Doug Oberhelman advocated for the building of the Keystone XL pipeline, a pipeline that would connect the Alberta tar sands in Canada to an existing pipeline in the United States. Oberhelman's op-ed touted the perceived benefits of the pipeline:

Think how manufacturers will help grow the U.S. economy if after more than six years of examination, review and debate, this pipeline is finally approved. Manufacturers can hire tens of thousands of workers to build a modern, state-of-the-art pipeline, delivering a project that will increase U.S. energy supplies.


Let the construction begin and manufacturers will hire laborers, welders, mechanics, clerks, engineers and office managers. Although some argue that the bulk of hiring will be insufficient -- only 42,000 temporary construction-related jobs and far fewer permanent ones -- think about it this way: Putting 42,000 people to work is like employing every undergraduate and graduate student at the University of Illinois at Urbana-Champaign.

Creating more than 42,000 jobs -- even temporary jobs -- is no small matter, especially when the United States faces historically low labor participation rates like we do now.

Let the construction begin, and see the benefits to local communities as they absorb the more than $2 billion in worker payments from Keystone XL jobs.

However, while the paper did disclose the fact that Oberhelman is the CEO of Caterpillar, it left out the significant financial benefit the construction of the pipeline would have for Caterpillar. A Forbes article from March 2013 quoted the then-Canadian Minister of Natural Resources, Joe Oliver, as saying that, “the oil sands are the largest market in the world for Caterpillar mining trucks.” Indeed, even the Keystone XL pipeline website highlights Caterpillar as one of the companies that would benefit from the pipeline's construction.

In addition, a letter from the Vice President of Caterpillar, Kathryn D. Karol, to Rep. Lee Terry (R-NE) in support of the Keystone XL pipeline explains that Caterpillar has a “keen interest in the approval” of the pipeline as “the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbine, and locomotives ... With energy related products and services accounting for over one-fourth of [Caterpillar's] business.”